Risk Disclosure Policy

This notice provides you with the information about the risks associated with dealing in digital assets through services provided to you by Klink Finance LTD.

Please ensure that you fully understand and can afford to assume the associated risks before using any of our Services. The purchase of digital assets is not appropriate for all investors unless they have dealt with them in the past and/or possess relevant knowledge, skills and expertise as well as understand the extent of risk involved.

This risk description lists some, but not all, of the risks associated with owning, trading and using digital assets in general, and the use of any our products and services in particular nor can it explain how the risks relate to your personal circumstances. Therefore, the risks mentioned below should not be considered as exhaustive, and other material risks may apply to our services. Therefore, we recommend you perform your own research before using our services.

By using Klink Services, you agree to the Terms of Service, Cookie Policy and Privacy Policy, and to this Risk Disclosure explicitly.

A) General

1. By using our Services, you agree that Klink Finance LTD and its affiliates (collectively, “we,” “our,” or “Klink”) do not provide any legal, tax, or financial advice and you are strongly advised to obtain independent legal, tax, or financial advice prior to making any financial decision, including buying, trading, holding or using digital assets. You are solely responsible for understanding and assessing whether the risks associated with digital assets are appropriate for you.

2. Klink does not make any offers, recommendations, or invitations for you to deal in digital assets or use any services, and does not consider your personal circumstances, financial situation, needs, or goals. We recommend that you carefully assess your financial situation and capabilities and use only those funds that you can afford to lose before making any financial decision.

3. It is your obligation to ensure that you understand and have made an independent assessment of the suitability and appropriateness of a transaction into which you are entering and the nature and extent of your exposure to the risk of loss in light of your own objectives, financial and operational resources, and other relevant circumstances.

4. Past performance is no guarantee of future results.

B) Risks Related to Digital Assets Generally

1. Cryptocurrency lacks the protection of regulated investment services such as a centralized regulatory authority that can take corrective measures to protect the value of cryptocurrencies. These assets are highly volatile in nature and their value may be affected by unpredictable events, including but not limited to performance of world markets, interest rates, changes in taxation on income and capital, foreign exchange rates, regulatory and legislative changes, technological developments and market sentiment, which can result in significant price fluctuations within a short period of time and can lead to financial losses. Before investing in cryptocurrencies, you should be aware that the risk of loss when trading, investing or owning digital assets can be significant.

2. Digital assets are not deemed as legal tender in many jurisdictions and there is no guarantee that they will be accepted for their intended purpose at any time in the future. The availability and liquidity of the marketplace may be subject to limitations or violations, and there is no guarantee of the price at which you can sell or exchange your digital assets.

3. The investor in digital asset must understand that the nature of digital assets carries a risk of fraud or cyber-attack, including rollback attacks or blockchain reorganizations. Digital asset transactions are not reversible. Erroneous transactions may result in the irreversible loss of your funds.

4. Where you hold digital assets in your on-chain Wallet, you must be careful when maintaining your private keys and backup phrases. Loss of private keys and backup phrases may result in irreversible loss of your funds. Due to the decentralized nature of blockchain, there is no central party that may restore your private keys, extract your funds or reimburse you for your losses. Any third-party gaining access to your Digital Assets Wallet or Wallet approved can extract your funds, and you may not be able to identify or find such parties. Never provide any person with your wallet’s private keys or backup phrases.

5. There is a risk that once you send digital assets to an address, you may lose access and any rights to those digital assets indefinitely or permanently, in particular due to an incorrectly provided address. Losses due to fraudulent or accidental transactions may not be possible.

6. Digital assets that are intended to mimic or follow the price of another asset (such as any fiat currency or commodity) may not always accurately reflect such prices, which may fluctuate above or below their perceived value.

7. Digital assets are largely unregulated in most jurisdictions, and limited protection (if any) may be afforded to users in the event of a loss. Digital asset exchanges and service providers may not be subject to regulatory supervision.

8. Certain jurisdictions have their own treat of digital assets, and the cross-border nature of the blockchain and of digital assets may make them subject to the laws of various jurisdictions. You must always make sure that any use you make of any digital asset is compliant with all applicable laws.

9. Different jurisdictions may impose specific tax rules and treatments on digital assets. You must ensure you understand the tax implications of your activities, and always comply with all reporting and payment obligations applicable to you. All taxes resulting from your use of the Services are your sole responsibility.

10. Blockchain technologies are susceptible to a wide variety of risks, from malicious attacks to technical difficulties and failures, as well as hard forks, which may result in the loss of digital assets transacted or held over the blockchain, decrease in the market value of digital assets, increased transaction costs or delays in execution of transactions. In case of such an event Klink Shall not be responsible for any failure and/or mistake and/or breach and/or error which shall occur on the blockchain or in any other network or system where the currencies are being traded or exchanged.

11. You should be aware that the risk of loss in trading or holding digital assets can be substantial. As with any asset, the value of digital assets can go up or down and there can be a substantial risk that you lose money buying, selling, holding, or investing in digital assets.

C) Risks Related to Using Klink Services

1. Klink may suffer technological difficulties which may prevent the access or use of your account or delay your transactions.

2. Klink’s top priority is the security of its systems, the digital assets held by it, and its users’ personal information. However, Klink (and third parties having authorized access or control over such assets) may suffer malicious attacks and security breaches, which may result in the compromise of such assets.

3. Be aware of phishing sites and always make sure you are visiting the official website (https://klinkfinance.com) and app. Klink will never ask you for confidential information such as passwords, private keys, seed phrases, or secret codes. You should store this information privately and securely and report any suspicious activity.

4. We try to ensure that the information on the Klink Platform as well as any other information provided by us is correct. Still, we do not give any express or implied warranty as to its accuracy. We do not accept liability for any error or omission.

5. We advise you not to fully rely upon the information shared on the services and expressly disclaim any responsibility for inaccurate or incomplete information on our shared on the services through our platform or in any other way.

6. Klink deploys digital assets that you loan to Klink, such as through Klink’s prize-linked account service, in a variety of income-generating activities, including lending such digital assets to third parties and transferring them to external platforms and systems. 6. Klink conducts in-depth due diligence reviews of any such third party or platform, including security, financial and credibility tests. However, Klink cannot guarantee that these third parties shall not suffer any breaches, lose such assets or fail to return any assets to Klink, resulting in financial loss.

7. Klink’s obligation to return to its user the digital assets available in such user’s deposit account (subject always to Klink’s Terms of Service) is not affected by losses suffered by Klink, including as a result of any hack or loss of deployed assets (except where such losses are caused by a user’s act or omission), and such losses shall not be borne by the user. However, by engaging with Klink Services you acknowledge that there is a risk that Klink may become unable to repay its obligations to its creditors, in which case your funds may be lost, in whole or in part.

8. Legislative and regulatory changes or actions at the state, national, or international level may adversely affect Klink’s ability to continue to provide some or all of its services in any jurisdiction, continue to support any particular digital asset or continue to serve any specific user or group of users. Klink cannot guarantee the continued and uninterrupted provision of the Services to you.

9. Klink’s systems, as well as those of third parties utilized by Klink, may be subject to errors, bugs, disruptions, interruptions, and communication failures, which may result in delays, errors, temporary suspension, or inaccessibility of the Services, which might cause damages or losses to the user of the Services.

10. Digital assets are not legal tender, Klink is not a bank or depository institution, and your Klink account is not a savings account. Digital assets in your Klink account, including, but not limited to, digital assets used by you in Klink custody services, are not held by Klink as a fiduciary, are not insured by any private or governmental insurance plan.

11. You accept the inherent security risks of providing information and dealing online over the internet and will not hold us responsible for any breach of security unless it is due to our gross negligence.

12. You are responsible for determining whether the use of any of the Services is legal in your jurisdiction and you shall not use our Services if it is illegal in your jurisdiction to do so. If you are uncertain of the legal treatment, please seek independent legal advice.

13. You acknowledge that there are risks associated with utilizing an Internet-based platform including, but not limited to, the failure of hardware, software, and Internet connections. You acknowledge that the Company shall not be responsible for any communication failures, disruptions, errors, distortions, or delays you may experience when trading via the Services, however, caused.

D) Risks Related to Using the Prize Linked Service

1. Participation in the prize-linked account service may be considered a risky investment by governing authorities due to the underlying digital asset USDC.

2. Your prize-linked Account is not a checking or savings account, and it is not covered by insurance against losses. We will pledge, repledge, hypothecate, rehypothecate, sell, lend, or otherwise transfer or use the digital assets in your prize-linked account to counterparties. Such digital assets will be exposed to various risks as a result of such transactions.

3. In certain jurisdictions, digital assets are not legal tender and are not backed by the government or any regulatory authority. Accounts and value balances are not insured and are subject to FDIC, SIPC, FSCS, or ECB review if applicable. Your prize-linked account is not registered with any federal or state securities regulatory authority. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of digital assets.

4. You acknowledge that by utilizing the prize-linked account service, your digital assets are not custodied by Klink and may be subject to total loss if an event occurs at the protocol level, which is outside of Klink’s control. You understand and agree that notwithstanding anything else contained in this Risk Disclosure, Klink will not be responsible for any such loss (whether total or otherwise) of your digital assets and will not replace them or otherwise compensate you.

5. Klink’s current and future services are subject to significant regulatory uncertainty and could be or become subject to a variety of laws and regulations worldwide. At any time, increasingly strict legal or regulatory requirements may result in changes to our business or products, including the prize-linked service.

6. Klink deploys digital assets that you loan to Klink through the Prize-linked service in a variety of income-generating activities, including lending such digital assets to third parties and transferring them to external platforms and systems. Klink conducts in-depth due diligence reviews of any such third party, platform, or system, including security, financial, and credibility tests. However, Klink cannot guarantee that these third parties, platforms, or systems shall not suffer any breaches, lose such assets or fail to return any assets to Klink, resulting in financial loss. Klink may also sell, trade, or stake digital assets, which may result in financial loss.

7. In addition to risks from Klink’s deployment activities, disruptions to Klink’s operations could impact its ability to manage digital assets and result in financial losses. Legal or regulatory actions brought against Klink could result in financial losses or an inability to operate. Klink faces market risks that could result in financial losses.

8. Klink’s obligation to return to its user the digital assets available in such user's Klink account (subject always to Klink’s Terms of Service) is not affected by losses suffered by Klink including as a result of any hack or loss of deployed assets (except where such losses are caused by a user’s act or omission), and such losses shall not be borne by the user. However, by engaging with Klink you acknowledge that there is a risk that Klink may become unable to repay its obligations to its creditors, in which case your digital assets may be lost, in whole or in part.

9. The rewards Klink pays users for transferring their digital assets are determined on a weekly basis, based on a variety of considerations, including the laws of probability, market conditions, demand and supply of a particular digital asset, interest rates in the fiat markets and Klink’s own inventories and cost of capital.

10. While Klink strives to maintain stable reward rates over time, any change in circumstances may bring about changes to such rates, and in some events, the Prize rates may drop to 0%. Reward rates can be viewed on the Klink Platform. Users may choose to discontinue using the prize-linked to the Services at any time.